SVR vs LTV? Feeling confused

robocode

I asked in another thread for advice re fixing my mortgage for up to ten years. One thing confusing me is that I have read to pay special attention to what rate you go back on to it once this fixed period expires.

Looking at my letter from BOI it says "the lender's prevailing Standard Variable Rate will apply on expiry of this fixed term". But when I look at the rate options I see no mention of SVR



In this instance does the Standard Variable Rate refer to the 'Variable LTV'? Or are LTV and SVR separate entities?

Also, I assume once you fix for a number of years, once that period expires the bank have the right not to offer you another fixed rate, they could force you down to the (potentially) more expensive variable rate?

Trish56

Bank of Ireland's standard variable rate is 4.50% compared to AIB's 3.15% - this is because they never passed on any of the ECB rate reductions to existing customers and they offer new customers either loan to value or fixed rates however when people come off the fixed rates and they wish to go variable they are offered the standard variable or another fixed rate.

Wheety

On their website they say this

Owner Occupier rates
Owner Occupier rates are effective from 2nd November 2017 and are subject to change. These rates are provided for information only. At the end of a fixed rate period, customers on a fixed rate can choose from our range of fixed rate options or roll to the LTV Variable rate applicable at that time. Customers on a variable rate can choose from our range of fixed rates. To avail of a lower LTV fixed rate a property valuation report may be required.

They're saying LTV there?

robocode

That's interesting, different wording to the letter they sent me

Wheety

robocode wrote: »

That's interesting, different wording to the letter they sent me

Make sure you confirm in writing with them. The SVR tends to be much higher than LTV rates.

Trish56

That's why you have to be very careful when signing these forms. Go back to them and point out what's on the website and ask if that is applicable to existing customers and ask them to amend the form to include the loan to value rates.

robocode wrote: »

That's interesting, different wording to the letter they sent me